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Essay / MGMT405 Midterm - 630
1. What is the difference between RFI and RFP? In what cases should each of them be used? An RFI is a request for information; RFI is used when the project objective is uncertain and/or the technology is new or unusual. RFIs are used when you need to explore a variety of potential solutions. An RFP is a request for proposal, the RFP is used to formally request a proposal from suppliers. Often, the information and technical details obtained through an RFI are used to write the RFP. The RFP is used to request proposals from suppliers, the RFP and the winning proposal are part of the contract language. RFIs are used to collect market information. Sometimes RFIs are used to determine whether the product or technology exists or is even feasible. In some cases, the buyer will learn that there is no solution or that the solution is beyond budget. In other cases, the buyer learns exactly which product or service will provide the necessary solution. If the proposals meet the RFI, the buyer can write the RFP requirements from the technical details of the RFI. The RFI process saves the buyer time and money by clarifying their intentions during the procurement process. If a request for proposal is submitted without sufficient knowledge or detail of the requirement, the buyer will waste significant time answering questions, modifying or delaying contract award. The difference between RFI and RFP is clear, in that RFI is a request for more information before specifying the requirements of the RFP. Request for Proposal is used to request a proposal for a specific requirement. RFI is an unofficial request for more information and RFP is a formal request for an offer to provide a product or service.3. What environment for any project involving a change in the current business environment? It is important to document the existing environment in the RFP so that offerors can better understand the buyer's needs. Company history gives the bidder an understanding of the current environment and the problem the buyer needs to solve. By providing this information to the offeror, they can better visualize the business issues causing the problem and the technical issues. If they can understand the existing business environment and the problem, the offeror will be able to determine if their solution will solve the problem. Most importantly, the Offeror will be able to provide an accurate estimate of the cost and schedule required to implement the solution. Works Cited Porter-Roth, B. Request for Proposal: A Guide to Effective RFP Development. Addison-Wesley Professional.